New Delhi

India’s jewelry retail sector has surged to USD 80 billion (Rs 6400 billion) in the financial year 2024 from USD 50 billion in 2018, according to a report by Motilal Oswal Financial Services.

The report highlighted multiple drivers that led to the rapid growth of the industry, including rising disposable income, an improving mix for regular wear of jewelry, enhanced product offerings (design, diamonds, etc.), trust-building through mandatory hallmarking by the government, and a better buying experience at organized retail outlets. The organized retail jewelers accounted only for 36 to 38 per cent of the overall share in the retail segment; however, the majority of the retail jewelry market continued to be dominated by the unorganized/local players, comprising over 500,000 local goldsmiths and jewelers.

The report noted that the total gold consumption in India is 66 per cent for jewelry and the remaining 34 per cent for bars and coins. India’s gold supply is dominated by imports, and the country’s gold market experienced notable fluctuations in imports from FY18 to FY20.

The report stated that the country’s gold imports reached 980 tonnes in FY19 before declining to 720 tonnes in FY20. This volatility was led by various factors, including declines in global gold prices, buoyant economic conditions leading to heightened disposable incomes, and substantial demand for gold due to traditional celebrations and weddings.

However, in FY20, a significant drop occurred in gold imports due to escalating import duties and the initial stages of an economic slowdown.